Dumb Little Man is a smart little site, filled with all sorts of useful tips. Last week, DLM shared nine things to consider when choosing a credit card:
- The thirty-day rule: credit card companies can change your terms and conditions at any time with only thirty days notice.
- Transaction fees on balance transfers: if you’re moving to a new card with a lower rate, be sure this lower rate isn’t offset by a transfer fee!
- Is there an annual fee?
- What is the cash-back incentive limit? A 5% cash-back incentive isn’t so good if there’s a cap that restricts you.
- How long is the introductory interest rate valid? And what is the long-term permanent rate? Make a note in your calendar.
- DO NOT take cash advances. The special low rates are not available on cash advances.
- Are you an international traveler? Check to be sure your card doesn’t charge you extra for transactions outside your home country.
- Penalties for late or missed payments? Check the fine print to see just how much your interest rate will rise.
- Do I need this card? Why? The most important consideration of all.
Remember: you may be better off without a credit card of any kind, but if you must carry one, heed the advice of Dumb Little Man.
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This article is about Credit Cards